Lowe’s on Wednesday delivered a blended earnings report for the fourth quarter. However, shares rose in premarket buying and selling. The house enhancement retailer stated a weak housing market in Canada damage its outcomes. CEO Marvin Ellison famous, nonetheless, that “U.S. macroeconomic fundamentals stay sound for 2019.”
For the quarter ended Feb. 1, Lowe’s reported a web lack of $824 million, or $1.03 per share, in contrast with web revenue of $554 million, or 67 cents a share, 12 months in the past. Excluding one-time gadgets, Lowe’s earned 80 cents per share, a penny a share forward of analysts’ forecast based mostly on Refinitiv knowledge.
Lowe’s stated the newest outcomes included $1.6 billion in pretax expenses: $952 million was tied to a goodwill impairment cost Lowe’s took for its enterprise in Canada. “We anticipate continued weak point within the Canadian housing market within the close to-time period, however, stay assured in our market place in Canada and the lengthy-time period potential of that enterprise,” Ellison mentioned. Income through the fourth quarter rose to $15.65 billion from $15.49 billion a year in the past. That was wanting analysts’ expectations for $15.74 billion.
Lowe’s stated gross sales at its shops open for at the least 12 months climbed 1.7 % in the quarter, lacking expectations for development of 2.1 p.c. Similar-retailer total sales for its U.S. dwelling enhancement enterprise had been up 2.4 p.c, Lowe’s mentioned. Lowe’s shares rose almost three % in premarket buying and selling on the information. As of Tuesday’s market shut, the inventory is up about 14 % from a yr in the past, bringing the retailer’s market cap to roughly $84.three billion.
The outcomes from Lowe’s come directly someday after rival Residence Depot’s blended report. Unhealthy winter climate and a cooling actual property market within the U.S. damage the biggest dwelling enhancement retailer within the nation through the fourth quarter. Residence Depot’s outlook for 2019 additionally wasn’t as sturdy as some analysts had been anticipating, because the state of the housing market may nonetheless pose challenges within the yr forward.